Over the past eight days, the Iranian rial, the country's official currency, has lost a staggering 60% of its value against the US dollar. Some outside economists also estimate Iran's overall inflation rate to be as high as 69%. And this has not gone unnoticed by many Iranians, who this week turned out to protest in their thousands.

So does this mean US and EU sanctions imposed on the country over the continuation of its controversial nuclear program are working?

Nazila Fathi, who was the New York Times correspondent in Tehran until she was forced to leave the country in 2009, explains the significance of these developments.